Yelp losses larger than expected

Yelp posted a bigger-than-expected quarterly loss and its shares fell 6 percent in after-market trading as the San Francisco consumer review website faces competition from Facebook.

Facebook last month unveiled a new feature called "graph search" that lets its users to trawl their network of friends to find everything from restaurants to movie recommendations, bringing it into direct competition with Yelp.

"That's a big negative ... Facebook has the opportunity to replicate a lot of these smaller network players like Yelp pretty easily over a much larger audience," National Alliance Securities analyst Mike Hickey told Reuters.

Yelp's mobile app makes it easier for people to discover local businesses. It combines Yelp's reviews and other relevant information with knowledge of the consumer's location. It also allows consumers to "check-in" at local businesses.